The 3.6% COLA that Social Security beneficiaries will receive in 2027 is the highest in four years. The Social Security Administration (SSA) confirmed it on October 14, after the publication of the September inflation data.
The increase is above those of the last three years, although it remains far from the record raise of 2023, when inflation hit historic levels.
The COLA in recent years
- 2023 | 8.7%, the highest in four decades.
- 2024 | 3.2%.
- 2025 | 2.5%.
- 2026 | 2.8%.
- 2027 | 3.6%.
How the 3.6% was calculated
The COLA is determined by the CPI-W, the consumer price index for urban wage earners and clerical workers. The SSA compares the average of July, August and September with the same period of the previous year. In the third quarter of 2026, the CPI-W averaged 328.746, compared with 317.265 in 2025, an increase of 3.6%.
In August, after the July inflation data, the estimates already pointed to this figure, as we reported in our article on the 3.6% COLA projection.
What the increase means in dollars
For the average retired worker, the 3.6% means about $75 more a month. For an SSI recipient with the maximum payment, $35 more. These are the main amounts:
- Retired worker | $2,170 a month on average.
- Disabled worker | $1,701 a month on average.
- SSI individual | up to $1,029 a month.
The debate about the index
Senior advocacy groups have long argued that the CPI-W does not reflect the spending of older people, who spend more on housing and health care. Some proposals in Congress would replace it with the CPI-E, an index for the elderly, but none has been approved.
In addition, part of the increase will be absorbed by the Medicare Part B premium. Retirees can find the full details for their group in our report on the 2027 COLA for retirees, and the dates of the first checks in our December calendar.
